He also asked the neighbouring country to "give up" Kashmir once and for all.
"Pakistan should give up (Kashmir) once and for all. Moreover, linking everything to Kashmir is totally absurd and unacceptable. Kashmir is an integral part of India and there is no question of any bargain on it," Naidu said on the sidelines of an event here.
Noting that India was taking every step to improve relations with its neighbour and restart the dialogue process, he said "But in spite of these elements in Pakistan...If they go on doing this--aiding, funding and training terrorists-- this is not going to help the situation."
"If you want to discuss, clear your doubts any number of times. One can have discussions and also clear their doubts. But trying to make it a controversy, time and again, is not going to help in improving the relationship," Naidu said.
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He slammed Pakistan for its lament of being "a victim of terrorism", saying "on the one hand you are encouraging terrorists, and on the other hand, you are lamenting about terrorism. Let Pakistan realise and see to it that such forces are crushed down."
Basit had made the remark during an iftaar party in Pakistan High Commission on Saturday.
Asked about Jammu and Kashmir Chief Minister Mehbooba
Mufti's alleged remark of being ashamed of bloodshed in name of Islam during Ramzan, Naidu said, "Some people call it Muslim terrorism, some people call it Hindu terrorism. Terrorism has no religion, I do agree but at the same time if somebody continuously does it then she must have kept that in mind and then made that reaction.
The Minister also expressed his happiness over condemnation of terrorism by some clergymen and leaders of Muslim community in India, saying "That's a healthy trend. Every religion should come out openly and condemn the barbaric acts of terrorism."
Naidu also expressed hope that India would get the NSG membership in future amid reports that the group has decided to meet again later this year to discuss the process for allowing non-NPT signatories like India, into the group.
"My appeal to Opposition parties is let us not politicise at least matters related to international affairs. Let us keep our voice one to keep the country's prestige and honour. We hope to move forward and also get the membership of NSG in future," he said.